- Positive trade-related comments boost Oil prices and underpinned Loonie.
- Investors now look forward to the revised US GDP print for a fresh impetus.
The USD/CAD pair quickly retreated around 25-pips and retreated back below the 1.3300 round figure mark during the early European session.
The pair failed to capitalize on this week’s goodish rebound from the 1.3225 region and met with some fresh supply on Thursday to snap two consecutive days of winning streak amid a sudden pickup in Crude Oil prices.
Oil price dynamics played a key role
A combination of supporting factors provided a goodish lift to Oil prices in the last hour, which eventually underpinned demand for the commodity-linked currency – Loonie and exerted some downward pressure on the major.
Data from the Energy Information Administration (EIA) on Wednesday showed a large fall in the US crude inventories, which coupled with positive trade-related comments from China helped Oil prices reversed the early dip.
The Chinese Commerce Ministry spokesman Gao commented on the US-China trade spat this Thursday and showed a willingness to resolve the issue via a calm attitude, which led to an intraday turnaround in the global risk sentiment.
The pair has now eroded a major part of the previous session’s positive move as market participants now look forward to a revised estimate of the US Q2 GDP growth figures, due later this Thursday, for some meaningful impetus.
Technical levels to watch
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